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Supermarket Sales Analysis

Kedeisha October 6, 2023

Business Overview

The supermarket chain operates in multiple cities and has a diverse range of products across various categories. It serves a broad customer base with different buying preferences and behaviors. The supermarket’s operations are complex, involving inventory management, sales, customer service, and more.

The supermarket chain is committed to providing high-quality products and excellent customer service. It aims to meet the needs of its customers while also achieving its business objectives, such as increasing sales, maximizing profits, and expanding its market share.

However, the supermarket industry is highly competitive. The supermarket chain faces competition from other supermarkets and online retailers. To stay competitive, the supermarket chain needs to understand its sales performance, customer buying behavior, and market trends.

The supermarket chain collects sales data from its branches. This data includes information about the products sold, the quantity sold, the unit price, the total sales amount, the date and time of the transaction, the branch where the transaction took place, the city where the branch is located, the type of customer (member or normal), the gender of the customer, the product line, the payment method, the cost of goods sold, the gross margin percentage, the gross income, and the customer rating.

The management of the supermarket chain wants to analyze this data to gain insights that can help them make informed business decisions. They want to identify patterns and trends in the data that can help them increase their revenue, improve customer satisfaction, optimize their operations, and enhance their competitive position.

The management is interested in questions such as:

  • Which branches have the highest and lowest sales?
  • Which product lines are the most and least popular?
  • What are the buying behaviors of members and normal customers?
  • How do sales vary by time of day, day of the week, and month of the year?
  • How do customer ratings relate to sales and other factors?
  • Can we segment customers into different groups based on their buying behavior (customer segmentation analysis)?

Deliverables

  1. Your manager would like a functional dashboard and a slide deck to present your analysis and recommendations to the VP of Sales.
  2. Create a short video to present your dashboard.

Get the Data

Download the data here 

Guiding Questions

Exploratory Data Analysis (EDA)

  1. What is the total revenue for each branch?
    • Relevance: Understanding the revenue distribution across branches can help identify which branches are performing well and which ones need attention.
  2. What is the average rating for each branch?
    • Relevance: Customer ratings can provide insights into customer satisfaction and service quality at each branch.
  3. What is the total quantity of products sold by each branch?
    • Relevance: This can help understand the sales volume at each branch.
  4. What is the most popular product line?
    • Relevance: Identifying the most popular product line can help in inventory management and marketing strategies.
  5. What is the average gross income for each product line?
    • Relevance: This can help understand the profitability of each product line.

Feature Engineering

  1. Create a new feature ‘Sales’ as a product of ‘Quantity’ and ‘Unit price’.
    • Relevance: This feature can help in understanding the total sales for each transaction.
  2. Create a new feature ‘DayOfWeek’ extracted from ‘Date’.
    • Relevance: This feature can help in understanding the sales trends for different days of the week.

Data Visualization

  1. Plot the total revenue for each branch.
    • Relevance: Visual representation can provide a clear picture of the revenue distribution across branches.
  2. Plot the average rating for each product line.
    • Relevance: This can help visualize the quality of different product lines as perceived by the customers.
  3. Plot the total quantity of products sold by each branch.
    • Relevance: This can help visualize the sales volume at each branch.
  4. Plot the count of each product line sold.
    • Relevance: This can help visualize the popularity of each product line.

Submission Instructions

Post your solutions in the Look What I Did discussion group. I am looking forward to seeing your submissions.